The BSE’s midcap and smallcap indices gained about 26% during the same period.

Brokers and analysts didn’t want to comment on the record. Many said on condition of anonymity that the trend seemed to indicate that investors weren’t as confident about the administration of chief minister Anandiben Patel.

“There was a Modi premium for these companies because he allowed these companies to be run like any other professional entity. Now, investors are not sure if things are as efficient as before when it comes to state-owned companies,” said a leading broker.

From mid-September 2013, when Modi was declared the Bharatiya Janata Party prime ministerial candidate, to May 26, 2014, the day he assumed charge as PM, shares of Gujarat state-owned companies surged 40-190%. Investors felt at the time that the prospects of these companies would improve if Modi became prime minister.

Some Gujarat businessmen said the trend was also reflective of the declining confidence of industry in the new administration, with some of them suggesting that their earlier optimism may have been unrealistic.

“Things have changed since the change of guard in Gujarat. Businessmen are not as confident as they were during the Modi’s rule,” said a state industrialist. “There was an expectation that if Modi became the next prime minister, Gujarat-based companies would have an advantage.”